Medicare Part D plans cost an average of $34.50 per month in 2026. $0-premium plans are available in 32 states and Washington, D.C. in 2026. Other Medicare Part D costs to consider are deductibles, copays and coinsurance.
The average estimated monthly Part D plan premium in 2026 is $34.50. Other factors can affect the cost of Part D including monthly premium, yearly deductible and copayments. High-income earners may pay a surcharge known as the “income-related monthly adjustment amount” (IRMAA).
No, Medicare Part D isn't a requirement. However, many people find that enrolling in a Part D plan is worth the investment. Your health can be unpredictable, so while you may not need many (or any) prescription drugs now, you may need them in the future.
With Part D, the extra amount you pay is determined by Medicare based on your tax-reported income, but your total costs will depend on the Part D plan you have. Part D plans are only provided by private insurance companies, so premium amounts will vary.
Under a provision in the Inflation Reduction Act, beneficiaries no longer face cost sharing in the catastrophic coverage phase of the Part D benefit. In 2025, Medicare beneficiaries will pay no more than $2,000 out of pocket for prescription drugs covered under Part D.
To be enrolled on Part D, you must enroll through one of the prescription drug companies that offers the Medicare Part D plan or directly through Medicare at www.Medicare.gov. You can pay premiums directly to the company, set up a bank draft, or have the monthly premium deducted from your Social Security check.
You may have to pay more, depending on your income. Who pays a higher Part D premium because of income? You'll pay an extra 1% for each month you could have signed up for Part D, but didn't, and didn't have creditable drug coverage. We'll add this penalty to your monthly Part D premium.
If you qualify, you can deduct premiums for Medicare Part B and Part A if you're required to pay them, as well as Part D, Medicare Advantage and Medigap premiums, and eligible long-term care insurance premiums.
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One of the chief complaints about the program is the overwhelming complexity involved with choosing a prescription drug plan. Nearly 1,900 prescription drug plans exist overall, and depending on an enrollee's geographic region, beneficiaries must evaluate 45 to 66 plans.
It remains a useful tool for Medicare beneficiaries in 2025 and beyond. GoodRx offers an easy way to compare medication costs and find important discounts. Using GoodRx can help you save a lot on your prescriptions. Sometimes, the savings may even be more than what you get from your Medicare Part D plan alone.
Apply for Medicare Part D Extra Help program. The Extra Help program helps people with limited income and resources lower or cut Part D costs. Medicare Part D provides drug coverage. The Extra Help program helps with the cost of your prescription drugs, like deductibles and copays.
Maximum out-of-pocket drug cost
The out-of-pocket maximum for a Medicare Part D prescription drug plan is $2,100 in 2026.
Some of the items and services Medicare doesn't cover include:
President Donald Trump's "big beautiful" tax law provides a new senior "bonus" or deduction of up to $6,000 per individual or $12,000 for married couples. The temporary deduction applies to taxpayers ages 65 and over whose income is within certain thresholds.
In 2026, the Medicare Part D Standard Benefit Includes a $615 Deductible and a $2,100 Cap on Out-of-Pocket Drug Spending. Note: The manufacturer discount applies to brand-name drug costs only. For generic drug costs, plans pay 75% in the initial coverage phase and Medicare pays 40% in the catastrophic coverage phase.
You should itemize deductions on Schedule A (Form 1040), Itemized Deductions if the total amount of your allowable itemized deductions is greater than your standard deduction or if you must itemize deductions because you can't use the standard deduction.
What is the average cost of health insurance per month? Most individuals pay around $450–$600 per month. Family plans often range from $1,100–$1,700 per month.
Your CalPERS health coverage will automatically be canceled the first day of the month after you turn 65. Review Cancellation of CalPERS Health Coverage for information on reinstating your health coverage.
Medicare Drug Coverage (Part D) Premiums
The chart below shows your estimated drug plan monthly premium based on your income. If your income is above a certain limit, you'll pay an income-related monthly adjustment amount in addition to your plan premium.
Medicare does not cover:
The Centers for Medicare & Medicaid Services (CMS) has set the standard monthly Part B premium at $202.90 in 2026, an increase of $17.90, or just under 10 percent, from the 2025 premium of $185.00.
Medicare Part D helps cover the cost of prescription drugs. Part D is optional and only provided through private insurance companies approved by the federal government. However, Part D is offered to everyone who qualifies for Medicare.